The Role of Tourism and Hospitality in a Country’s Economy
Did you know that every tenth job in the world is a result of the global tourism and hospitality industry? Many reports suggest that this global industry has a yearly economic turnover of more than $7.6 trillion!
The tourism and hospitality industry will contribute significantly towards every country’s economy. For naturally beautiful locations like Switzerland and parts of Germany, the sector acts as life support by bringing in more jobs and revenue. The commercial activities associated with the industry like such as travel also create further employment for locals.
For anyone interested in a hospitality career, it can be interesting to learn more about the role of tourism in economic development before you pursue this industry. Keep reading to further explore the role of tourism in the development of the national economy.
- It acts as a good source of local and national employment
The most significant contribution of the tourism and hospitality industry in any country or region is the immediate creation of new jobs. When people travel abroad, they want to visit places of natural beauty or historic significance. This creates new job opportunities like tour planners and operators, site visit guides and travel consultants.
The German hospitality industry is a great example here. As per a Statista report, the national hospitality industry created more than 3,144,000 direct jobs and 2,172,000 indirect jobs in Germany in 2017.
The tourism contribution to economic development can’t be ignored either. The tourism industry’s revenue helps the government build the necessary infrastructure like bridges and rail-lines, which furthers the development of those regions.
- It acts as a boost for local industries
By increasing the amount of footfall into a country, the tourism sector also boosts other industries. The local service sector such as food production, automobiles or catering companies can also benefit from an increased number of tourists.
A German government report published in 2014 suggested that the local logistics and vehicle repair services in major German cities like Berlin benefited greatly from the increase in the number of tourists that year.
- It brings in useful foreign exchange
When foreign nationals visit a country, they bring in much-needed foreign exchange that strengthens the host country’s financial reserves. A well-developed tourism sector can bring in significant foreign exchange earnings throughout the year. Apart from this, the tourism industry also helps promote direct foreign investment in local tourist spots which further benefit the local economies.
According to CEIC data, Germany’s tourism sector brought foreign exchange earnings to $41 million in 2019.
- It brings in capital to preserve the local art and culture
The tourism sector also helps preserve the rich art, history and cultural aspects of a country. The people visiting from different parts of the world are educated about important tourist locations’ as well as their cultural and historical significance. This, in turn, spreads awareness about the need to protect them for future generations.
A 2007 Research Gate paper on German cultural heritage discovered that the country had witnessed an increased number of tourists due to cultural tourism in the country. In turn, the increased footfall further spread awareness about the cultural sites in Germany and the importance of their preservation.
Want to make your own footprint in the highly dynamic global hospitality industry? The MA in International Tourism, Hospitality and Event Management from the Berlin School of Business and Innovation (BSBI) can help you do that!
The programme can broaden your understanding of the sector and give you highly specialised skills to work in this industry. You will also cover essential concepts of business strategy, cross-cultural leadership and operations management and learn how to apply them in the hospitality sector. You will also explore the role of tourism and hospitality in economic development of a country.
The master’s programme is tailored to prepare you for management and leadership positions in the hospitality or event management industry. The degree is awarded in partnership with the prestigious Universita Telematica Internazionale UNINETTUNO.
You can explore the programme features in detail by visiting the BSBI website.
This article was written by Sweha Hazari.